Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

I present the explanatory memorandum and I move:

That this bill be now read a second time.

This bill is to make key reforms to give effect to proposals, developed by an industry working party, to reform the portable long service leave arrangements in the black coal mining industry. This group comprised representatives from the New South Wales Minerals Council Ltd, the Queensland Resources Council, the CFMEU Mining and Energy Division, the Electrical Trades Union, the Australian Manufacturing Workers Union, the Association of Professional Engineers, Scientists and Managers Australia, the New South Wales Colliery Officials Association and the Mine Managers Association of Australia.

I commend the participants on their collaborative approach and their commitment to the future success of the unique black coal mining industry long service leave scheme.

Employees in the black coal mining industry have accessed portable long service leave entitlements under the terms of federal awards since 1949 which in turn were funded by an excise on coal production. Since 1993 the funding of entitlements has been through an employer levy scheme and administered by the Coal Mining Industry (Long Service Leave Funding) Corporation. Employers are reimbursed when they have made a payment to an eligible employee in respect of their entitlement.

A priority concern of the industry working party was to ensure that the long service leave entitlement applied universally in the black coal mining industry. Amendments were made in 2009 to address this concern—extending the preserved award based long service leave entitlements to all the eligible employees who did not otherwise have an award derived long service leave entitlement from 1 January 2010.

While the 2009 amendments addressed the priority concerns of the working party this bill seeks to further these reforms by providing for the remaining proposals of the working party.

This bill legislates the minimum long service leave entitlement for all eligible employees in the black coal mining industry based on the precursor award entitlement.

Provision is made for all eligible employees, whether full time, part time or casual, to accrue long service leave in the black coal mining industry. An eligible employee will be entitled to long service leave when they have completed a period, or periods, of qualifying service totalling eight years or more. A key imperative of the working party proposals was to improve the operation of the scheme so that the amounts that employers are reimbursed from the Coal Mining Industry Long Service Leave Fund in respect of long service leave payments more closely correspond to the amounts that they have paid into the fund by way of levy. The bill therefore changes the basis on which the levy is imposed and facilitates changes to the employer reimbursement arrangements.

This bill provides for a greater compliance role for the corporation. The corporation will have the power to require persons to produce information or documents and standing to pursue alleged contraventions of a civil penalty provision on behalf of the Commonwealth. Additional penalty provisions have been included and existing penalty levels have been increased in line with contemporary standards.

This bill also makes changes to the structure and representation of the board of directors of the corporation to better reflect the current industry representative status of certain employee-representative and employer-representative groups, and to increase the terms of directors from two to four years.

The bill also establishes a regime for transition from the award-derived long service leave scheme to the new statutory long service leave scheme established by this bill.

The government is very pleased to facilitate these amendments proposed by the industry working party, and I am very proud to have had the unexpected opportunity to move the second reading of this bill in the House of Representatives. There is no doubt that this bill will provide significant benefit to both employers and employees in the black coal mining industry—employers, who contribute such a great deal of wealth to this nation; and employees, who work so hard to deliver that wealth for their families but also in the national interest.

I commend this bill to the House and I congratulate the CFMEU Mining and Energy Division, other unions and indeed employer groups who have been here this week to indicate the broad cross-sector support that there is for this important legislation.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

I thank the minister for assisting the smooth operation of the Main Committee this afternoon.

Leave granted for second reading debate to continue immediately.

Sussan Ley (Farrer, Liberal Party, Shadow Minister for Childcare and Early Childhood Learning) Share this | Link to this | Hansard source

The coalition agrees with the government around the intent of the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2011 and has no arguments with it. I do not propose, therefore, to repeat the information provided by the minister, but I will simply make a brief summary for the purposes of our side of the House.

Following award modernisation in the black coal mining industry, long service leave entitlements were deducted from employees' wages as part of their award provisions. Entitlement to long service leave had been tied to time worked in the industry, as opposed to time worked with a single employer, since 1949, with recognition given to the fact that individual employers should not be required to fund the full long service leave entitlement when the employee may in fact have been working for a number of employers over the years.

It is interesting—if I might just refer to the Bills Digestto reflect on the history of the legislation. During his second reading speech on the State Grants Coal Mining Industry Long Service Leave Bill 1949, on 24 October 1949, the then Minister for Defence and Minister for Post-War Construction, John Dedman MP, stated:

… it would be impracticable for the cost of the leave to be made the full financial responsibility of the individual employers … During their working lives, many employees have changed from one employer to another, and it would be inequitable to place the cost of all such employment solely upon present day employers. Some collieries are not financially capable of meeting the additional cost involved by the leave. Many employees have been employed in the past by colliery companies that are no longer in existence. Moreover, employers would be reluctant to employ men with previous employment in the industry because of the additional liability for long service leave that their employment would involve. This would tend to make labour less mobile than is desirable within the industry, and could result in a loss of skilled labour …

Broadly, the scheme now placed before the House in this interdependent set of three measures is that an excise of 6d. a ton will be placed upon coal produced by those employees in the coal-mining industry who will receive the benefit of long service leave. The proceeds of this excise will be placed in the Commonwealth trust fund and from this fund the Treasurer of the Commonwealth will be empowered to make grants to the States.

That pretty well sums up the background to why we are here today and the history of this slightly peculiar piece of legislation, given that it does not apply to all other industries. In order to promote workforce mobility and a more equitable system, a determined excise was placed in a Commonwealth trust to fund the liability when it came due for each coalminer.

This bill seeks to reinstate the pre-award entitlement to leave, also extending the entitlement to long service leave to casual and part-time workers. Since its introduction, there have been some significant changes in the administration of and methodology for long service leave in the industry. Employers now pay a payroll levy of 2.7 per cent, paid into the Coal Mining Industry (Long Service Leave) Funding Corporation. Yet award based long service leave was terminated under the Fair Work system. So provision was made via the Coal Mining Industry (Long Service Leave) Funding Amendment Act 2009 to maintain long service leave entitlements through the payroll levy and Commonwealth transfers to the corporation on behalf of all eligible employees, including non-award employees, from 1 January 2010. This bill will provide greater certainty to employees and employers; and, as noted by the minister, industry, unions, employers and employees are all wholeheartedly in support of it. The coalition also echoes that support. I thank the House.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The question is that this bill be now read a second time. I call the ever-efficient member for Makin!

Tony Zappia (Makin, Australian Labor Party) Share this | Link to this | Hansard source

I will take the opportunity to speak very briefly on the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2011. As the minister quite rightly has pointed out, this bill is the result of a working party having done some work in respect to the recommendations and the reforms that are obviously being debated today and form the basis of this legislation. Having said that, it was also interesting to listen to the minister's second reading speech and the comments he made in respect to it, because long service leave per se is a matter that this government and our side of politics have been very much in support of for many, many years. In fact, others would and might properly say that here in Australia we have long service provisions that many other countries in the world would dearly like to replicate. At the end of the day, it is all about ensuring that people who work within industries are properly remunerated for their service with those industries, and part of that remuneration comes in the form of long service leave and similar entitlements that go with any employment.

This particular bill does make some key reforms to the black coal mining industry long service leave scheme. These are, as the minister quite rightly pointed out, important reforms that have been developed by the industry working party and, as I understand it, have the support of key employer and employee associations in the coalmining industry. I think that that is an important point that we need to make: the reforms do have the support of both employers and employees. It is not often that we see that being the case. In fact, all too often we see conflict between the employer and the employees in terms of what they believe is fair and appropriate compensation. But, in this case, it seems that we do have agreement between both parties, and that is commendable. It is commendable because it is my view and always has been my view that, where you get cooperation between employers and employees, you ultimately get the best outcomes.

I note that, in some European countries, many companies have embraced that principle in a very strong way, where they have tried to come up with a structure for their industries whereby the employees share in any profits that are made by the employer. It seems to me that, if we could replicate that in Australia—more so than what is currently the case—it might be a good thing both for the profitability of the companies and for industrial relations more broadly and more generally. These reforms include a legislated minimum long service leave entitlement; an improved approach to how long the service leave levy is imposed, to more closely align amounts paid into the fund with reimbursement amounts; a greater compliance role for the Coal Mining Industry (Long Service Leave Funding) Corporation; minor changes to the structure and representation of the Coalmining Industry (Long Service Leave Funding) Corporation board; and transitional arrangements to facilitate the transition from the award long service leave rules to the new statutory entitlement rules. The changes benefit both employers and employees, as I have said, and are vital to the ongoing success of this industry.

The last point I would simply make about this matter is that right now, as I speak, we are debating the minerals resources rent tax in the other chamber. One issue that is absolutely relevant to that debate is that it applies to both the coal and iron ore industry sectors. It has also been alleged by speakers opposite, time and time again, that the future of the coal industry will in fact be impacted as a result of policies that this government is introducing. I just want to make the point that that certainly does not seem to be the case from my observations and from the investments that have been brought to the House's attention only in recent months. In fact, quite the opposite seems to be occurring. But, more importantly, to have this legislation coming through the parliament at the same time as those claims are being made I believe is quite significant and, quite frankly, highlights that the views being expressed by members opposite about the possible damage to the coal industry as a result of the other legislation are simply not borne out by the representatives of the coal industry themselves.

As I said, I wanted to make some brief points about and comments on the bill. Having done that, I commend the bill to the House.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Can I thank the member for the assistance in the Main Committee this afternoon.

George Christensen (Dawson, National Party) Share this | Link to this | Hansard source

In addressing the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2011 I note that there is broad industry and union support for the legislation. I, too, am happy to support this bill and associate myself with the minister's remarks. This legislation presents a fair outcome for the people who dedicate their working lives to what is a very tough occupation. I am proud to say not only that coalmining is in my family, with both a brother and a brother-in-law working as miners in the industry, but that my electorate of Dawson also has a substantial part of its population working in the coalmines in the Bowen Basin.

The enduring image of a coalminer with hard hat and blackened face is still a pretty valid stereotype. Although coalminers use different methods today, it can still be a demanding way to earn a living. Today's coalminers still endure long working days; in fact, today's coalminers still endure long working weeks. Today's coalminers endure hard physical work. They often spend many days, weeks or even months away from family and friends. The money is often very good but, unfortunately, too much attention is paid to the monetary rewards and too little attention is given to what coalminers endure—what they forgo, what they miss out on—and what they contribute to our economy and our lifestyle.

Just as the booming coalmines of the Bowen Basin have shaped the national economy, the coalminers who work in those mines have shaped the economies of regions which support the resources industry, like Mackay. Some of the changes to our economy present us with challenges; there is no doubt about that. For most, however, the booming regional economy is very much welcome. It is welcomed by most people, except perhaps for the Greens. If there is one thing the Greens cannot stand it is someone who works hard and makes a good living, and the Greens will stop at nothing to destroy the coalmining industry, other mining industries and all other endeavours that allow hard workers to earn more than a part-time basketweaver would. If the economic vandals in the Greens had their way, a very high proportion of Central and North Queensland residents would be earning less than a part-time basketweaver—a lot less. With such a high percentage of people still employed in the coal industry, the culture of regions like Mackay changes to suit. Lifestyles and families are forced to adjust to the demands of shift work. The demands of working seven days on and seven days off, the demands of working night shifts and rotating rosters are incorporated into how a family lives and how the regional community provides assistance and services to those families. We are blessed to be part of the boom in the Mackay region and in Dawson, but we should keep those issues in mind, as well as the fact that coalmining is demanding work. It is a legitimate occupation, despite what the Greens contend, as is any other type of work in the coalmining industry and the resources sector.

These workers deserve equitable access to long service entitlements. It is important that these workers be entitled to long service leave on the basis of service in the industry rather than service with a particular employer, given the nature of shift and transience within the industry. Under the Howard government, in 1999 an industry scheme was established to support funding of long service leave entitlements. I am pleased to say that this bill ensures continued fair access to long service leave entitlements for workers in the coalmining industry. I commend the bill to the House and am glad that it has bipartisan support.

Kirsten Livermore (Capricornia, Australian Labor Party) Share this | Link to this | Hansard source

I rise to support the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2011. This bill will deliver key reforms to the coalmining industry's long service leave arrangements and ensure that industry employees are given a fairer, more flexible provision to obtain their long service leave. On coming to office, the government moved quickly to ensure that legislation was passed in 2009 to ensure that long service leave arrangements for coalminers contained in industry awards were preserved in the transition to the new Fair Work system of modern awards. We did that to preserve and remove from any doubt a secure system for recognising and paying long service leave accrued by workers in the black coal mining industry.

There was a recognition then, however, that the 2009 legislation, while a necessary minimum to have in place in time for the 2010 transition to modern awards, would need to be revisited to transform the award entitlement to a statutory entitlement to long service leave and to address other concerns. The bill we are debating today picks up on those matters, which could not be fully addressed in time for the 2009 act. This bill provides amendments to four acts relating to the coalmining industry's long service leave arrangements and includes fairer provisions for qualifying for long service leave for employees, better arrangements for employers to access the scheme and minor amendments to the structure of the Long Service Leave Funding Corporation.

As we have heard from other speakers in the debate, the coal industry has a unique set of arrangements for the accrual and payment of long service leave entitlements, dating back to 1949. Coalmining has a long history in this country. It is a history characterised by miners seeking to improve their working conditions through determined negotiation and at times industrial action. Hard-fought gains, such as portable long service leave, should be given every protection and should continue to be updated, as we are doing here this afternoon, so that their application keeps pace with changes in the industry.

I am pleased to say that with the passage of the 2009 act the government guaranteed the continuation of those longstanding long service leave arrangements in the black-coal mining industry. That was important, because the long service leave arrangements developed for the industry addressed the specific circumstances of coalmining and sought to give miners similar entitlements and protections to those of workers in other industries. For very good reason, coalmining industry employees are entitled to transferable long service leave based on their time in the industry, not their time with an individual employer. Mobility of the workforce has always been a feature of the coalmining industry, and the ever-increasing demand for skilled and experienced miners will make it even more likely that miners will move from mine to mine and from employer to employer as opportunities open up for them. The long service leave scheme was designed to accommodate this mobility as well as to protect the entitlements in the event of company insolvency. It is not so much of a problem today but was certainly a real concern at earlier times in the industry's development.

Under the coal industry long service leave scheme, funding for long service leave is maintained by an industry scheme created by the Coal Mining Industry (Long Service Leave Funding) Act 1992 and related legislation. Since 1993 the funding of long service leave entitlements has been through an employer levy scheme and has been administered by the Coal Mining Industry (Long Service Leave Funding) Corporation. Under the Coal Mining Industry (Long Service Leave Funding) Act 1992 employers are reimbursed from the Coal Mining Industry (Long Service Leave Funding) Fund for any long service leave payments they make to an eligible employee.

The preservation of existing award based entitlements to portable long service leave in the black-coal mining industry and the administrative arrangements to support it were a priority for those in the industry at the time parliament passed the 2009 bill. Since then there has been a concerted effort by those from across the industry to come to agreement on outstanding matters. This bill gives effect to proposals developed by an industry working party to further improve the operation of portable long service leave. This has been a collaborative approach and credit goes to the many industry leaders and representatives who demonstrated their commitment to the future success of this important and unique long service leave scheme, among them the Mining and Energy Division of the Construction, Forestry, Mining and Energy Union, the Queensland Resources Council, the Mine Managers Association of Australia and a number of other trade unions representing workers in the coal industry. The changes put forward by this group and adopted by the government benefit both employers and employees in the industry.

Employees in the black-coal mining industry now have a legislated minimum long service leave entitlement. Provision is made for all eligible employees, whether full-time, part-time or casual, to accrue long service leave in the mining industry. An eligible employee will be entitled to long service leave of up to 13 weeks when they have completed a period or periods of qualifying service totalling eight years or more. As the member for Dawson described, coalminers certainly earn that long service leave in the work they do and the very long shifts they work. A new rule for calculating qualifying service will mean that employees will be able to have their service recognised when there are breaks in service. The eight years of qualifying service can be calculated as the total number of years of service, with breaks in between, as long as a break does not exceed four continual years.

For employers the bill provides for an improved approach to how the long service leave levy is imposed on them, to more closely align amounts paid into the fund with reimbursement amounts. There is a greater compliance role for the Coal Mining Industry (Long Service Leave Funding) Corporation and change to the structure and representation of the board of directors. All of these amendments go to creating a legislative long service leave entitlement that is backed up by consistent and transparent administrative arrangements so that it works in the interests of employees and employers in the coal industry.

The importance of having that certainty and fairness has been brought home to me by the case of Daniel Vincent, who came to see me earlier this year in Moranbah. Daniel is the kind of person the coal industry relies on for its success. After serving his apprenticeship he has built a career in the industry working for BMA. Daniel came to see me because he discovered that his time as an apprentice—four years during which he worked hard to learn his trade—was not accredited towards his qualifying service in the coal industry, because at that time he was not employed directly by a coal mining company but instead by a group training organisation, which is a very common occurrence in the industry.

I have brought Daniel's situation to the attention of the workplace relations minister and I continue to correspond with him about it. I am assured by the minister's office that the kind of case that Daniel has described was one that the working group gave consideration to in coming up with these reforms. Consequently, I believe that following the passage of this legislation Daniel will be in a position to ask the corporation to recognise the four years of his apprenticeship as part of his qualifying service in the coal industry for the purposes of accruing his much deserved long service leave. I will continue to work with Daniel, and with the further support of Daniel's union and the minister I hope to get this matter resolved once the legislation comes into effect on 1 January 2012.

This bill is further proof of this government's commitment to the coalmining industry, and particularly the miners—the men and women—of the Bowen Basin, whom I am very proud to represent in this place.

Ms Catherine King (Ballarat, Australian Labor Party, Parliamentary Secretary for Health and Ageing) Share this | Link to this | Hansard source

I thank the members for Makin, Farrer, Dawson and the member for Capricornia for their contributions. I particularly want to acknowledge the member for Capricornia, who has been a very long-standing advocate in this place for the rights of mining workers and represents a number of such people in her electorate. I thank her for bringing the attention of the House to the particular case. It makes it a very real example as to why this bill is necessary. The bill gives effect to proposals developed by an industry working party to reform portable long service leave arrangements in the black coal mining industry. I commend the industry and employee participants on their collaborative approach and their commitment to the future success of the black coal mining industry long service leave scheme. As the minister said at the commencement of this debate, the government is happy to propose these amendments which will benefit both employers and employees in the black coal mining industry. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.